- A response has been filed by Ripple in anticipation of an intervenor’s appeal by the Securities and Exchange Commission.
- Interlocutory appeals are likely to be filed with Judge Torres and the 2nd Circuit Court of Appeals by the securities regulator.
- In opposition to the anticipated appeal, Ripple and its executives claim that it does not meet the prerequisites for such an appeal.
Ripple: Immediate Appeal Won’t Terminate The Lawsuit
The law firm defending Ripple wrote to Judge Analisa Torres, who is presiding over the case, to oppose the SEC’s anticipated move for leave to file an interlocutory appeal of the court’s July 13 order granting the cryptocurrency firm’s summary judgment.
An interlocutory appeal is used to challenge a trial court judgement while other portions of the case are being resolved. In other words, an interlocutory appeal is used to challenge a ruling before the court issues a final decision.
Last month, James Murphy, a well-known cryptocurrency lawyer on X, predicted that the SEC will file an interlocutory appeal. According to Murphy, rising political pressure on SEC Chair Gary Gensler, as well as the possible impact of the summary judgement on the SEC’s current high-profile actions against cryptocurrency heavyweights Binance(BNB) and Coinbase, may push the securities regulator to take such action. To proceed with an interlocutory appeal, the SEC would require the authorization of Judge Torres as well as the United States (US) Court of Appeals for the Second Circuit. This would necessitate the regulator demonstrating three things: First, the previous judgement of the court includes a controlling legal question. Second, there are considerable reasons for disagreement on that subject, and finally, an urgent appeal may hasten the end of the dispute. Ripple, together with Chief Executive Brad Garlinghouse and co-founder Chris Larsen, objected to the anticipated interlocutory appeal on the grounds that none of the conditions outlined above will be met in the SEC’s anticipated interlocutory appeal.